In 2015-0575921I7, the CRA considered a hypothetical example involving an incorrect classification of depreciable property acquired in a statute-barred year, followed by CCA deductions taken in subsequent statute-barred years. The CRA said it can compute the additions and subtractions in the definition of UCC in s. 13(21) in the first open (non-statute-barred) year by reversing the original cost in element “A” and not adjusting prior CCA taken under element “E”. Any recapture arising from this calculation (in the first open year) can be included in income under s. 13(1) for that year – notwithstanding that the same recapture could (in theory) be computed in an earlier statute-barred year (see page 6). The CRA confirmed that this position on recapture “updates” its views in paragraph 14 of IT-478R2. This updated position will apply in new Income Tax Folio S3-F4-C1 to property acquired after December 31, 2015.